USD 157.8 Billion
Artificial Intelligence (AI) Market Size, Share, Growth Analysis, By Solution(Hardware, Software, Services), By Application(Cybersecurity, Finance and Accounting, Human Resource Management, Legal and Compliance), By Technology(Deep Learning, Machine Learning, Natural Language Processing (NLP), Machine Vision), By Industry Vertical(Law, Retail, Advertising & Media, Automotive & Transportation), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2073 |
Region:
Global |
Published Date: June, 2024
Pages:
197
|Tables:
104
|Figures:
66
Artificial Intelligence (AI) Market Insights
Artificial Intelligence (AI) Market size was valued at USD 157.8 Billion in 2022 and is poised to grow from USD 285.9 Billion in 2023 to USD 1,047.0 Billion by 2031, at a CAGR of 15.92% during the forecast period (2024-2031).
Artificial intelligence (AI) is emerging as the single-largest digital technology shaping the digital revolution of this century. Growing investments in the research and development of artificial intelligence technology from public and private organizations are driving market growth. The rise in the adoption of automation in multiple industry verticals is also creating a high demand for more advanced AI models capable of handling complex automation. The expanding application scope of AI in healthcare and the use of AI in managing data are also slated to bolster artificial intelligence market development over the coming years. Surging demand for better computational power and improved processing capabilities will also uplift the demand for artificial intelligence along with other technologies. Innovation will be of the essence for any company looking to make a mark in the global artificial intelligence market. Significant advancements in neural network research are also opening the scope for the development of more advanced AI models.
On the other hand, ethical concerns regarding the deployment of artificial intelligence on a massive scale and the high costs of the same are slated to slow down AI adoption. AI involves the use of massive volumes of data for training and operation, which is why data privacy and security concerns are also limiting factors for market growth. Artificial intelligence companies are continually focusing on addressing and overcoming these challenges to unlock the full potential of the market.
US Artificial Intelligence (AI) Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Software
Growth Rate
15.92% CAGR
Global Artificial Intelligence Market ($ Bn)
Country Share for North America Region (%)
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Artificial Intelligence (AI) Market Segmental Analysis
The global artificial intelligence market is segmented based on solution, application, technology, industry vertical, and region. Based on solution, the market is bifurcated into hardware, software, and services. In terms of application, the market is segmented into cybersecurity, finance and accounting, human resource management, legal and compliance, operations, sales and marketing, supply chain management, and others. Based on technology, the market is divided into deep learning, machine learning, natural language processing (NLP), machine vision, generative AI, and others. Based on industry vertical, the market is segmented into law, retail, advertising & media, automotive & transportation, healthcare, agriculture, BFSI, manufacturing, and others. Based on region, the market is segmented into Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa.
Artificial Intelligence (AI) Market Analysis by Technology
Machine learning and deep learning technologies are projected to account for a dominant share of the artificial intelligence market. High use of these technologies in training AI models is what has allowed this segment to hold sway over others. These technologies help simplify complex data driven operations and applications for AI models. These technologies are highly vital for an AI model’s cognitive capabilities as they handle everything from data tagging to data virtualization. Growing volumes of data being used in conjunction with AI models will help this segment maintain prominence over the coming years.
Meanwhile, the demand for natural language processing (NLP) technologies is projected to surge at an impressive pace across the study period and beyond. Emphasis on the enhancement of AI and human interaction is projected to help this segment expand rapidly. This is the technology that helps conversational and generative AI models translate from human input to machine input and give out desired results. The technology uses computational linguistics and machine learning in harmony to actively process human language and give output in the same as well.
Artificial Intelligence (AI) Market Analysis by Solution
Hardware required to run complex AI algorithms should possess high computational and processing power. This is why hardware solutions specifically made for AI use are in high demand. Companies are continually utilizing advancements in semiconductor technology to create more powerful hardware capable of handling AI operations. Nvidia is currently the top company when it comes to AI hardware. Graphic processing units (GPUs), tensor processing units (TPUs), and application specific integrated circuits (ASIC) are some key hardware components that are high in demand.
Meanwhile, as the deployment and use of artificial intelligence increases around the world, it also drives the demand for AI services. Requirement of support and maintenance for AI models is what helps the services segment emerge as a highly opportune one. Rising popularity of AI as a Service(AIaaS) is also expected to bolster market growth via this segment. New companies looking to penetrate the AI market can flourish if they enter this segment as leading companies are focused on the development of advanced AI software and hardware components.
Global Artificial Intelligence Market By Solution
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Artificial Intelligence (AI) Market Regional Insights
Technological prowess of North American companies has allowed this region to hold sway over the global artificial intelligence demand outlook. The stronghold of companies such as Microsoft, Google, and IBM in artificial intelligence research and development is unparalleled, which is what allows North America to dominate the global market. High investments in the deployment of new AI models and increasing accessibility to AI for enterprises as well as consumers are also creating an opportune setting for artificial intelligence companies in this region. The United States is projected to spearhead artificial intelligence demand in North America as most industry verticals leverage AI to enhance their business potential in this country. Canada is another highly opportune space for artificial intelligence companies operating in this region.
The title of fastest-expanding regional market goes to the Asia Pacific region. This can be primarily attributed to the rapidly increasing investments in AI research and development in this region. China, India, and Japan are estimated to be the leading markets for AI companies operating in the Asia Pacific region. Robust government support and a flourishing start-up ecosystem focusing on AI and its applications are key factors helping the Asia Pacific region expand at an impressive CAGR over the coming years. Rising demand for automation in industries of this region will also offer lucrative business scope for artificial intelligence providers going forward.
Global Artificial Intelligence Market By Region
- Largest
- Fastest
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Artificial Intelligence (AI) Market Dynamics
Artificial Intelligence (AI) Market Driver
Growing Adoption of Automation
- Automation is penetrating almost all walks of life across multiple industry verticals. AI plays a critical role in making automation solutions functional and capable, thereby driving demand for advanced AI models. Integration of AI with multiple automation components is also expected to bolster market development in the future.
Analytics for Improved User Experience
- AI models can process huge volumes of data and identify patterns from the same. This helps companies develop meaningful insights to enhance their customer and user experience in multiple ways. Advanced analytics are also being made possible by advanced AI technologies.
Artificial Intelligence (AI) Market Restraints
Ethical Concerns Regarding AI Use
- Unjustified actions and bias are among prime ethical concerns associated with the use of AI. There are more ethical concerns that are hindering the adoption of artificial intelligence. The fact that AI models can’t emulate human empathy in their decision-making is the prime ethical concern that needs to be addressed.
Expensive Implementation
- Deploying AI on a massive scale or even on a small scale requires many investments in capital and other resources. While there are many benefits of AI use, the benefits still don’t outweigh the costs of implementation and maintenance. This is why companies need to focus on the development of affordable AI models to maximize their business scope.
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Artificial Intelligence (AI) Market Competitive Landscape
Artificial intelligence companies are projected to invest heavily in the research and development of new and advanced AI models. Companies are projected to continually focus on expanding the functionality of their AI models. Launching application-specific custom AI models will be a key trend among all artificial intelligence companies. Integration of artificial intelligence with other technologies will also provide a highly lucrative business scope for all market players. Collaborations and acquisitions are also estimated to emerge as popular strategies for new and established artificial intelligence companies. Supportive government initiatives are also estimated to speed up artificial intelligence market growth in the long run.
Top Artificial Intelligence (AI) Companies
- Microsoft (US)
- Alphabet (Google) (US)
- OpenAI (US)
- NVIDIA (US)
- Meta Platforms (US)
- Intel (US)
- AMD (US)
- Tesla (US)
- IBM (US)
- Palantir (US)
- Mobileye (Israel)
- DeepL (Germany)
- Dynatrace (US)
- Huawei (China)
- Alibaba Cloud (China)
- UiPath (Romania)
- SentinelOne (US)
- Aurora Innovation (US)
- C3 AI (US)
- H2O.AI (US)
- Darktrace (UK)
- Presight AI (UAE)
- ODDITY Tech (US)
- Upstart (US)
- NWTN Inc. (UAE)
- Bayanat AI (UAE)
Artificial Intelligence (AI) Market Recent Developments
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In March 2024, GE HealthCare, a renowned medical technology company, launched a new PVA urology-based AI software. Prostate Volume Assist (PVA) was developed to enhance urological treatment and imaging. The company also announced the launch of new AI-enhanced oncology solutions in May 2024.
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In April 2024, Meta, a renowned technology company founded by Mark Zuckerberg, announced the launch of its new custom AI chips. This is the second generation of Meta Training and Inference Accelerator (MTIA) chips from Meta as it tries to reduce its reliance on Nvidia’s AI chips.
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In October 2023, Darktrace, a renowned cybersecurity organization from Cambridge, launched a new AI-enabled cloud security solution. Darktrace/Cloud utilizes AI to deal with sophisticated cyber threats to cloud architecture.
Artificial Intelligence (AI) Key Market Trends
- Human-AI Collaboration: This trend is estimated to be immensely popular in the future as AI-human collaboration can resolve the ethical challenges that come with AI. Moreover, human as well as AI capabilities and functionality can be maximized through the use of novel human-AI collaboration tools.
- Explainable AI (XAI): Concerns regarding trust and reliability of artificial intelligence models have been voiced around the world and this has led to the inception of explainable AI. XAI helps in building trust on AI models by offering understandable explanations for its actions and decisions. This helps in better understanding of AI working methods and irons out all the concerns regarding misuse of AI that arise among users.
Artificial Intelligence (AI) Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, artificial intelligence is a technology that is already bringing the digital revolution in ways no one had envisioned. High investments in AI research, growing acceptance of AI models in different industry verticals, and increasing demand for automation are all forecasted to benefit artificial intelligence demand outlook in the future. On the other hand, high costs of deployment, ethical concerns regarding AI use, workforce displacement, and data privacy and security concerns are all estimated to slow down adoption of artificial intelligence going forward. Presence of companies such as Google, Nvidia, and Microsoft allows North America to account for a dominant stance in the global artificial intelligence market. Artificial intelligence companies should focus on improving AI-human collaboration and development of explainable AI models to stand out from the competition in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 157.8 Billion |
| Market size value in 2031 | USD 1,047.0 Billion |
| Growth Rate | 15.92% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence (AI) Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence (AI) Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Artificial Intelligence (AI) Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence (AI) Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence (AI) Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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